Blockstream, the global enabler of Bitcoin infrastructure technology, has announced a newly-established Asset Management Division at Blockstream aimed at bridging the gap between Bitcoin and mainstream finance.
Hedge fund professional Sean Bill has been appointed as Chief Investment Officer to lead this initiative.
An investor and portfolio manager with experience in traditional finance, Sean will spearhead the newly formed Asset Management Division at Blockstream aimed at further closing the gap between the Bitcoin (BTC) ecosystem and TradFi.
Dr. Adam Back, co-founder and CEO of Blockstream, said these updates have been announced at a time when Bitcoin is “hitting all-time highs and amid unprecedented levels of institutional interest.” Back added that these developments align with their mission to “bring Bitcoin-based investment solutions into the mainstream.”
This latest update marks a strategic move for Blockstream towards delivering end-to-end, Bitcoin-based financial and investment solutions “that not only support the Bitcoin ecosystem but also leverage Blockstream’s full technology stack, including the Liquid Network.”
With Bitcoin reaching new all-time highs, the timing is right for Blockstream’s new asset management division to focus on developing “a continually expanding suite of innovative financial products to meet the growing demand for Bitcoin-based investment opportunities among investors.”
Sean Bill explained that by combining his experience in finance with Blockstream’s work in Bitcoin technology, they now aim to build new and innovative products that “are technologically superior to existing solutions and meet the evolving needs of the market.”
Products in development include:
- Bitcoin yield fund: Aims to function like a money market fund for holders of bitcoin, providing yield on Bitcoin assets.
- USD yield fund: Aims to offer lending opportunities that generate income for investors through bitcoin-backed loans.
These institutional products are designed to enhance liquidity by addressing the “needs of bitcoin holders seeking to earn yields and those looking to access capital.”
In developing these financial products, Blockstream will leverage its Asset Management Platform (AMP) to tokenize “a range of assets on the Liquid Network. AMP’s capabilities include whitelisted asset issuances and adherence to required AML/KYC standards.”
This will provide the foundation needed to bring Bitcoin-backed assets to the mainstream, “building confidence in Bitcoin as an integral part of modern investment portfolios.”
The Liquid Network is an open-source Bitcoin sidechain and layer-2 solution for which Blockstream is the technical provider.
Liquid claims $1.8 billion of real-world assets (RWAs), including stablecoins, securities, and most recently, US Treasury bills.
These assets on Liquid account for nearly “15% of the entire blockchain-based RWA market.”
